OAKLAND, Md., July 20, 2026 /PRNewswire/ -- First United Corporation (the "Corporation", "we", "us", and "our") $(FUNC)$, a bank holding company and the parent company of First United Bank & Trust (the "Bank"), today announced financial results for the three- and six-month periods ended June 30, 2026. Consolidated net income was $5.7 million on a Generally Accepted Accounting Principles ("GAAP") basis for the second quarter of 2026, or $0.87 per diluted share, compared to $6.0 million, or $0.92 per diluted share, for the second quarter of 2025 and $6.7 million, or $1.03 per diluted share, for the first quarter of 2026. Net income for the first six months of 2026 was $12.3 million, or $1.90 per diluted share, compared to $11.8 million, or $1.81 per diluted share, for the same period of 2025. Non-GAAP net income was $7.3 million and $13.9 million for the three- and six-months ended June 30, 2026, respectively. Annualized Return on Average Assets and Return on Average Equity for the six-month period ended June 30, 2026 were 1.20% and 11.92%, respectively.
According to Jason Rush, President and CEO, "We delivered solid results this quarter. Earnings benefited from a stronger net interest margin and steady growth in income from our wealth franchise. While we recorded a one-time consulting expense of approximately $2.2 million, we believe the investment in technology and pricing initiatives will position us for improved efficiency in future years to come. Loan growth was steady in the second quarter and our loan pipelines remain robust going into the third quarter. Expense control will continue to be a focus across the organization."
Second Quarter Financial Highlights:
-- Net interest margin, on a non-GAAP, fully tax equivalent ("FTE") basis,
was 3.98% for the second quarter of 2026, reflecting increased loan
yields and reduced funding costs.
-- Strong loan production during the quarter, with $66.0 million in
commercial loan originations and $33.9 million in residential mortgage
originations.
-- Provision expense was $0.8 million in the second quarter, as a result of
continued economic and political uncertainty and modest loan growth,
slightly offset by improved qualitative factors.
-- Operating expenses increased by $2.1 million when compared to the linked
quarter driven by a one-time, non-GAAP $1.7 million, net of tax, expense
related to consulting fees incurred for contract negotiations with our
core processor in the second quarter of 2026.
-- A cash dividend of $0.26 per share was declared in the second quarter.
Income Statement Overview
On a GAAP basis, net income for the second quarter of 2026 was $5.7 million, inclusive of a $1.7 million, net of tax, third party consulting expense incurred for core contract negotiations. This compares to $6.7 million in the first quarter of 2026 and $6.0 million for the second quarter of 2025. Excluding this expense item, net income was $7.3 million on a non-GAAP basis.
Q2 2026 Q1 2026 Q2 2025
--------------------------------------- ------- ------- -------
Net Income, GAAP (millions) $ 5.7 $ 6.7 $ 6.0
--------------------------------------- ------- ------- -------
Net Income, non-GAAP (millions) $ 7.3 $ 6.6 $ 6.0
--------------------------------------- ------- ------- -------
Diluted net income per share, GAAP $ 0.87 $ 1.03 $ 0.92
--------------------------------------- ------- ------- -------
Diluted net income per share, non-GAAP $ 1.13 $ 1.02 $ 0.92
--------------------------------------- ------- ------- -------
Second Quarter 2026 Compared to Second Quarter 2025
Consolidated net income decreased by $0.3 million for the second quarter of 2026 when compared to the second quarter of 2025. The decrease was driven by an increase in other expense as a result of a one-time, non-GAAP $1.7 million, net of tax, consulting expense related to the core contract negotiations. This increase was partially offset by a $1.9 million increase in net interest income, an increase of $0.3 million in non-interest income, inclusive of gains, and a $0.1 million decrease in provision for credit losses. Comparing the second quarter of 2026 to the same period of 2025, interest and fees on loans increased by $1.5 million as a result of new loans booked at higher rates and the continued repricing of adjustable-rate loans. Interest expense decreased by $0.6 million when comparing year-over-year quarterly expense as a result of the repayment of a $25.0 million brokered certificate of deposit in January 2026 and $65.0 million in Federal Home Loan Bank ("FHLB") borrowings in March 2026. Other operating income increased by $0.3 million driven by an increase in trust and brokerage income of $0.3 million as a result of increased production and favorable market values on assets under management. Other operating expenses increased by $2.8 million driven by the one-time, non-GAAP item discussed above, a $0.8 million increase in salaries and benefits as a result of filling open positions in late 2025 and 2026, normal merit increases in April 2026 and increased incentive payouts, partially offset by reduced life and health insurance expense due to reduced claims and an increase in the reduction of costs associated with loan originations related to increased loan production.
Second Quarter 2026 Compared to First Quarter 2026
Compared to the linked quarter, net income decreased by $1.0 million driven by the increased other expenses as a result of the one-time expense discussed above, partially offset by an increase in net interest income of $0.5 million and a $0.1 million decrease in provision expense. Non-interest income was stable when comparing the second quarter of 2026 to the first quarter of 2026.
Year to date 2026 compared to Year to date 2025
Net income for the six months ended June 30, 2026 was $12.3 million on a GAAP basis, inclusive of a $1.7 million, net of tax, consulting fee incurred on core contract negotiations completed in the second quarter, and $13.9 million on a non-GAAP basis compared to GAAP and non-GAAP basis income of $11.8 million for the six months ended June 30, 2025. The year-over-year increase of $0.5 million was attributable to a $3.9 million increase in net interest income an increase in other non-interest income of $0.7 million, inclusive of net gains, as a result of increased trust and brokerage income of $0.5 million, increased bank owned life insurance ("BOLI") income of $0.2 million related to a one-time death benefit received in the first quarter of 2026, partially offset by an increase in other operating expenses of $3.9 million driven by the aforementioned consulting fee, increased salaries and benefits of $1.7 million and an increase in data processing expenses of $0.3 million. Salaries and benefits increased due to increased salaries as a result of new hires and annual merit increases in April 2026 and increased incentive payouts, partially offset by an increase in the reduction of costs associated with loan originations related to increased loan production.
Net Interest Income and Net Interest Margin
Second Quarter 2026 Compared to Second Quarter 2025
Net interest income, on a non-GAAP, FTE basis, increased by $1.9 million for the second quarter of 2026 when compared to the second quarter of 2025. This increase was driven by an increase of $1.3 million in interest income. Interest income on loans increased by $1.5 million due to the increase of 15 basis points in overall yield on the loan portfolio as new loans were booked at higher rates during 2025 and 2026 as well as the upward repricing of adjustable-rate loans. Investment income remained stable as management continued to reinvest cashflows back into the portfolio resulting in an increase in yield of 12 basis points. Interest income on federal funds sold decreased by $0.3 million due to a decrease of $22.2 million in average cash balances held at the Federal Reserve Bank as a result of loan growth in the second quarter of 2026. Interest expense decreased by $0.6 million in the second quarter of 2026 when compared to the second quarter of 2025. Interest on deposits increased slightly by $0.2 million despite an $84.4 million increase in average deposit balances, primarily in interest bearing demand and money market deposits. Long-term borrowing interest expense decreased $0.8 million due to a decrease of average balances of $90.0 million for the second quarter of 2026 when compared to the same period of 2025 primarily related to the repayment of $65.0 million and $25.0 million of FHLB advances at their maturities in March of 2026 and September of 2025, respectively.
Second Quarter 2026 Compared to First Quarter 2026
Comparing the second quarter of 2026 to the first quarter of 2026, net interest income, on a non-GAAP, FTE basis, increased by $0.5 million. Interest income increased by $0.5 million driven by an increase in average loan balances of $66.1 million in the second quarter of 2026. Interest expense was stable when comparing the second quarter of 2026 to the first quarter of 2026. Long-term borrowing expense decreased by $0.5 million due to the repayment of $65.0 million in maturing FHLB advances in March of 2026. Management's strategic focus on margin management during the second quarter of 2026 resulted in a 15 basis point increase in the net interest margin to 3.98% compared to 3.83% for the first quarter of 2026.
Year to date 2026 compared to Year to date 2025
Comparing the six months ended June 30, 2026 to the six months ended June 30, 2025, net interest income, on a non-GAAP, FTE basis, increased by $4.0 million. Interest income increased by $3.0 million, primarily driven by an increase of $2.3 million on interest and fees on loans as average loan balances increased by $39.9 million and an increase in yield by 14 basis points. Interest expense on deposits increased slightly by $0.2 million despite an increase in average deposit balances of $89.7 million driven by increases of $26.5 million in demand deposit accounts, $86.2 million in retail money market balances, partially offset by decreases in savings balances of $10.8 million and $15.0 million in brokered time deposits. Interest expense on short-term borrowings remained stable and interest expense on long-term borrowings decreased by $1.2 million as a result of a decrease in average balances of $62.0 million, primarily due to the repayment of $65.0 million of FHLB advances at their maturities in March 2026. The net interest margin for the six months ended June 30, 2026 was 3.89% compared to 3.61% for the six months ended June 30, 2025.
Non-Interest Income
Second Quarter 2026 Compared to Second Quarter 2025
Other operating income increased by $0.4 million driven by an increase in trust and brokerage income of $0.3 million as a result of increased production of new accounts as well as favorable market values in assets under management. Net gains decreased by $0.1 million as new residential mortgage production was booked in house as compared to selling to secondary market outlets.
Second Quarter 2026 Compared to First Quarter 2026
On a linked quarter basis, other operating income, including net gains, remained flat. Net gains decreased by $0.1 million related to the gain on the sale of a branch office recognized in the first quarter of 2026. BOLI income decreased by $0.2 million and was attributable to the receipt of a one-time death benefit received in the first quarter of 2026. These decreases were offset by an increase in debit card income of $0.1 million due to normal fluctuations and an increase in trust and brokerage income of $0.1 million.
Year to date 2026 compared to Year to date 2025
Comparing the six months ended June 30, 2026 to the same period of 2025, other operating income, inclusive of net gains, increased by $0.7 million, driven by an increase in trust and brokerage income of $0.5 million as a result of increased production of new business as well as favorable market values in assets under management, as well as an increase in BOLI income of $0.2 million as previously mentioned.
Non-Interest Expense
Second Quarter 2026 Compared to Second Quarter 2025
Other operating expenses increased by $2.8 million driven by a $0.8 million increase in salaries and benefits as a result of filling open positions throughout 2025, normal merit increases in April 2026 and increased incentive payouts, partially offset by reduced life and health insurance expense due to reduced claims and increased reductions in costs associated with loan originations. Professional services expenses increased by $2.1 million due to the $1.7 million, net of tax, third party consulting fee discussed above. These increases were partially offset by reductions in check fraud-related expenses and OREO expenses.
Second Quarter 2026 Compared to First Quarter 2026
Other operating expenses increased by $2.1 million driven by the one-time, non-GAAP $1.7 million, net of tax, consulting fee incurred with core contract negotiations. All other expenses were stable when comparing the second quarter of 2026 to the first quarter of 2026 as we continue a strategic focus on expense control.
Year to date 2026 compared to Year to date 2025
Comparing the six months ended June 30, 2026 to the same period of 2025, other operating expenses increased by $3.9 million driven by the one-time, non-GAAP expense previously discussed, a $1.7 million increase in salaries and benefits as a result of new hires late in 2025 and early 2026, normal merit increases in April 2026 and increased incentive payouts, partially offset by reduced life and health insurance expense due to reduced claims and increased reductions in costs associated with loan originations and a $0.3 million increase in equipment, occupancy and data processing expenses as a result of new software implementation. These increases were partially offset by reductions in OREO expenses and other miscellaneous expenses such as check fraud expenses, employee benefits expenses and miscellaneous expense related to share repurchase tax recorded in the second quarter of 2025.
The effective income tax rates, as a percentage of income, for the six-month periods ended June 30, 2026 and 2025 were 24.1% and 24.7%, respectively.
Balance Sheet Overview
Total assets at June 30, 2026 were $2.1 billion, representing a $5.4 million decrease since December 31, 2025. During the six months of 2026, cash and interest-bearing deposits in other banks decreased by $46.4 million. The investment portfolio decreased by $0.2 million. The decreases were partially offset by increases in gross loans of $50.4 million as well as an increase in pension assets of $3.2 million due to increased market values.
Total liabilities at June 30, 2026 were $1.9 billion, representing a $14.1 million decrease since December 31, 2025. Total deposits increased by $0.4 million when compared to December 31, 2025. In January 2026, a $25.0 million brokered certificate of deposit with an interest rate of 4.23% matured and was repaid. Savings and money market accounts increased by $27.6 million due primarily to the expansion of current and new relationships throughout the first six months of 2026. Non-interest-bearing demand deposits decreased by $11.6 million and interest-bearing demand deposits increased by $13.3 million. Retail time deposits decreased by $3.9 million since December 31, 2025. Short-term borrowings increased by $50.0 million at June 30, 2026 compared to December 31, 2025 as a result of overnight borrowings in anticipation of loan funding. These borrowings were subsequently fully repaid in July.
Outstanding loans of $1.6 billion at June 30, 2026 reflected a $50.4 million increase since December 31, 2025.
Loan Type Change since Change since
(in millions) March 31, 2026 December 31, 2025
---------------------- --------------- ------------------
Commercial $16.6 $31.9
---------------------- --------------- ------------------
Residential Mortgages $20.8 $10.2
---------------------- --------------- ------------------
Consumer $ 9.3 $ 8.3
---------------------- --------------- ------------------
Gross Loans $46.7 $50.4
---------------------- --------------- ------------------
Since December 31, 2025, commercial real estate loans increased by $55.0 million as a result of new business relationships as well as additional growth in existing relationships; acquisition and development loans increased by $11.9 million; commercial and industrial loans decreased by $35.0 million as a result of payoffs related to approximately $15.0 million due to competitive pricing, approximately $5.3 million related to sales of businesses, approximately $8.0 million as a result of a refinance to another institution, and the payoff of a floorplan line of credit. Residential mortgage loans increased by $10.2 million as a result of robust mortgage production booked in house as opposed to the selling to the secondary market outlets, offset slightly by normal amortization; and consumer loans increased by $8.3 million related to the purchase of a consumer loan pool in the second quarter of 2026.
New commercial loan production for the second quarter of 2026 was approximately $66.0 million. The pipeline of commercial loans as of June 30, 2026 was robust, and unfunded committed commercial construction loans totaled approximately $42.0 million. Commercial amortization and payoffs were approximately $71.6 million through June 30, 2026, due primarily to pay-offs of short-term commercial loans as well as normal amortizations of the commercial loan portfolio.
New consumer mortgage loan production for the second quarter of 2026 was approximately $33.9 million, with most of this production comprised of in-house mortgages. The pipeline of in-house, portfolio loans as of June 30, 2026 was $20.0 million. Unfunded commitments related to residential construction loans totaled $20.7 million at June 30, 2026.
Total deposits of $1.7 billion at June 30, 2026 remained flat when compared to December 31, 2025.
Deposit Type Change since Change since
(in millions) March 31, 2026 December 31, 2025
------------------------- --------------- ------------------
Non-Interest-Bearing ($9.9) ($11.6)
-------------------------- --------------- ------------------
Interest-Bearing Demand $14.6 $13.3
-------------------------- --------------- ------------------
Savings and Money Market ($16.8) $27.6
-------------------------- --------------- ------------------
Time Deposits- Brokered $ - ($25.0)
-------------------------- --------------- ------------------
Time Deposits- Retail ($3.1) ($3.9)
-------------------------- --------------- ------------------
Total Deposits ($15.2) $0.4
-------------------------- --------------- ------------------
In January 2026, a $25.0 million brokered certificate of deposit, with an interest rate of 4.23%, was repaid at its maturity. Savings and money market accounts increased by $27.6 million due primarily to the expansion of current and new relationships throughout the first six months of 2026. Non-interest-bearing demand deposits decreased by $11.6 million, offset by an increase in interest-bearing demand deposits of $13.3 million, primarily related to municipality accounts. Retail time deposits decreased by $3.9 million since December 31, 2025.
The book value of the Corporation's common stock was $32.91 per share at June 30, 2026 compared to $31.33 per share at December 31, 2025. At June 30, 2026, there were 6,453,836 basic outstanding shares and 6,462,604 diluted outstanding shares of common stock. The increase in the book value at June 30, 2026 was due to the undistributed net income of $9.0 million for the first six months of 2026.
Asset Quality
The allowance for credit losses ("ACL") was $20.6 million at June 30, 2026 compared to $19.0 million at June 30, 2025 and $19.5 million at December 31, 2025. The provision for credit losses was $0.8 million for the quarter ended June 30, 2026 compared to $0.9 million for both the quarters ended March 31, 2026 and June 30, 2025. Provision for credit losses was $1.7 million and $1.5 million for the first six months of 2026 and 2025, respectively. Asset quality remained strong during the first six months of 2026. Net charge-offs of $0.1 million were recorded for the quarter ended June 30, 2026 compared to net charge-offs of $0.2 million for both the quarter ended June 30, 2025 and the quarter ended March 31, 2026. The ratio of the ACL to loans outstanding was 1.31% at June 30, 2026 compared to 1.28% at December 31, 2025 and 1.27% at June 30, 2025.
The ratio of net charge offs to average loans was 0.04% and 0.07% for the six-month periods ended June 30, 2026 and 2025, respectively. The commercial and industrial portfolio had net charge offs of (0.10%) and (0.25%) for the six-month periods ended June 30, 2026 and 2025, respectively. Net charge offs in consumer loans decreased in the first six months of 2026 when compared to the first six months of 2025 from (0.96%) to (0.86%). The decrease was primarily driven by charge-offs in unsecured consumer loans in 2025. Details of the ratios, by loan type, are shown below. Our special assets team continues to actively collect on charged-off loans, resulting in overall low net charge-off ratios.
Ratio of Net (Charge Offs)/Recoveries to Average Loans
----------------------------------------------------------------------------
06/30/2026 06/30/2025
-------------------------- ----------------------- -----------------------
Loan Type (Charge Off) / Recovery (Charge Off) / Recovery
-------------------------- ----------------------- -----------------------
Commercial Real Estate 0.00 % 0.00 %
-------------------------- ----------------------- -----------------------
Acquisition & Development 0.03 % 0.13 %
-------------------------- ----------------------- -----------------------
Commercial & Industrial (0.10 %) (0.25 %)
-------------------------- ----------------------- -----------------------
Residential Mortgage 0.01 % 0.01 %
-------------------------- ----------------------- -----------------------
Consumer (0.86 %) (0.96 %)
-------------------------- ----------------------- -----------------------
Total Net Charge Offs (0.04 %) (0.07 %)
-------------------------- ----------------------- -----------------------
Non-accrual loans totaled $4.5 million at June 30, 2026 compared to $4.2 million at December 31, 2025. The slight increase in non-accrual balances at June 30, 2026 was related to one commercial loan moving to non-accrual status in the first quarter.
Non-accrual loans that have been subject to partial charge-offs totaled $0.1 million at June 30, 2026 and $0.2 million at December 31, 2025. Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $1.2 million at June 30, 2026 and $0.5 million at December 31, 2025. The increase was due to one mortgage loan of approximately $1.1 million that moved in the second quarter. As a percentage of the loan portfolio, accruing loans past due 30 days or more increased to 0.50% at June 30, 2026 compared to 0.32% at December 31, 2025 and 0.27% as of June 30, 2025. This increase was attributable to one large commercial loan.
ABOUT FIRST UNITED CORPORATION
First United Corporation is a Maryland corporation chartered in 1985 and a financial holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended, that elected financial holding company status in 2021. The Corporation's primary business is serving as the parent company of the Bank, First United Statutory Trust I ("Trust I") and First United Statutory Trust II ("Trust II" and together with Trust I, "the Trusts"), both Connecticut statutory business trusts. The Trusts were formed for the purpose of selling trust-preferred securities that qualified as Tier 1 capital. The Bank has two consumer finance company subsidiaries- Oak First Loan Center, Inc., a West Virginia corporation, and OakFirst Loan Center, LLC, a Maryland limited liability company -- and one subsidiary that it uses to hold real estate acquired through foreclosure or by deed in lieu of foreclosure -- First OREO Trust, a Maryland statutory trust. In addition, the Bank owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland, and a 99.9% non-voting membership interest in MCC FUBT Fund, LLC, an Ohio limited liability company formed for the purpose of acquiring, developing and operating low-income housing units in Allegany County, Maryland and Mineral County, West Virginia. The Corporation's website is www.mybank.com
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not represent historical facts, but are statements about management's beliefs, plans and objectives about the future, as well as its assumptions and judgments concerning such beliefs, plans and objectives. These statements are evidenced by terms such as "anticipate, " "estimate," "should," "expect," "believe," "intend," and similar expressions. Although these statements reflect management's good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. The beliefs, plans and objectives on which forward-looking statements are based involve risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports that First United Corporation files with the Securities and Exchange Commission entitled "Risk Factors". In addition, investors should understand that the Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the consolidated financial statements included in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and the impact that any such events have on our critical accounting assumptions and estimates made as of June 30, 2026, which could require us to make adjustments to the amounts reflected in this press release.
FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol : FUNC
Financial Highlights - Unaudited
(Dollars in thousands, except per share data)
Three Months Ended Six Months Ended
--------------------------------------------------------- -----------------------------------------------------
June 30, June 30, June 30, June 30,
---------------------------- --------------------------- ------------------------- --------------------------
2026 2025 2026 2025
---------------------------- --------------------------- ------------------------- --------------------------
Results of
Operations:
Interest income $ 26,169 $ 24,871 $ 51,880 $ 48,933
Interest expense 7,583 8,164 15,220 16,210
---------------------------- --------------------------- ------------------------- --------------------------
Net interest
income 18,586 16,707 36,660 32,723
Provision for
credit losses 781 860 1,660 1,516
Other operating
income 5,319 4,940 10,527 9,762
Net gains 39 146 171 238
Other operating
expense 15,765 12,974 29,458 25,550
---------------------------- --------------------------- ------------------------- --------------------------
Income before
taxes $ 7,398 $ 7,959 $ 16,240 $ 15,657
Income tax expense 1,731 1,975 3,910 3,867
Net income $ 5,667 $ 5,984 $ 12,330 $ 11,790
============================ =========================== ========================= ==========================
Per share data:
Basic net income
per share $ 0.88 $ 0.92 $ 1.91 $ 1.82
Diluted net income
per share $ 0.87 $ 0.92 $ 1.90 $ 1.81
Adjusted Basic net
income (1) $ 1.14 $ 0.92 $ 2.16 $ 1.82
Adjusted Diluted
net income (1) $ 1.13 $ 0.92 $ 2.15 $ 1.81
Dividends declared
per share $ 0.26 $ 0.22 $ 0.52 $ 0.44
Book value $ 32.91 $ 29.43
Diluted book value $ 32.86 $ 29.38
Tangible book
value per share $ 31.16 $ 27.64
Diluted Tangible
book value per
share $ 31.12 $ 27.59
Closing market
value $ 44.11 $ 31.01
Market Range:
High $ 45.98 $ 32.09
Low $ 36.27 $ 25.90
Shares outstanding
at period end:
Basic 6,453,836 6,494,611
Shares outstanding
at period end:
Diluted 6,462,604 6,506,493
Performance ratios:
(Year to Date
Period End,
annualized)
Return on average
assets 1.20 % 1.20 %
Adjusted return on
average assets
(1) 1.36 % 1.20 %
Return on average
shareholders'
equity 11.92 % 12.78 %
Adjusted return on
average
shareholders'
equity (1) 13.49 % 12.78 %
Net interest margin
(Non-GAAP),
includes tax
exempt income of
$138 and $103 3.89 % 3.61 %
Net interest margin
GAAP 3.87 % 3.60 %
Efficiency ratio -
non-GAAP (2) 57.49 % 59.66 %
(1) See
reconciliation of
this non-GAAP
financial measure
provided elsewhere
herein.
(2) Efficiency
ratio is a non-GAAP
measure calculated
by dividing total
operating expenses
by the sum of tax
equivalent net
interest income and
other operating
income, less
gains/(losses) on
sales of securities
and/or fixed assets
and costs incurred
on core contract
renewal. June 30, December 31,
2026 2025
---------------------------- ---------------------------
Financial Condition
at period end:
Assets $ 2,082,092 $ 2,087,453
Earning assets $ 1,854,045 $ 1,807,780
Gross loans $ 1,572,131 $ 1,521,704
Commercial Real
Estate $ 625,821 $ 570,808
Acquisition and
Development $ 102,211 $ 90,272
Commercial and
Industrial $ 242,013 $ 277,034
Residential
Mortgage $ 547,118 $ 536,912
Consumer $ 54,968 $ 46,678
Investment
securities $ 279,300 $ 279,534
Total deposits $ 1,735,513 $ 1,735,149
Noninterest
bearing $ 441,365 $ 453,036
Interest bearing $ 1,294,148 $ 1,282,113
Shareholders'
equity $ 212,374 $ 203,634
Capital ratios:
Tier 1 to risk
weighted assets 15.26 % 15.36 %
Common Equity Tier
1 to risk
weighted assets 13.48 % 13.52 %
Tier 1 Leverage 12.70 % 12.21 %
Total risk based
capital 16.51 % 16.61 %
Asset quality:
Net charge-offs for
the quarter $ (96) $ (99)
Nonperforming
assets: (Period
End)
Nonaccrual loans $ 4,514 $ 4,192
Loans 90 days past
due and accruing 391 477
---------------------------- ---------------------------
Total
nonperforming
loans and 90 day
past due $ 4,905 $ 4,669
============================ ===========================
Other real estate
owned $ - $ 1,083
Other repossessed
assets $ 2,780 $ 2,802
Modified loans $ 1,199 $ 1,209
Allowance for
credit losses to
gross loans 1.31 % 1.28 %
Allowance for
credit losses to
non-accrual loans 456.16 % 464.46 %
Allowance for
credit losses to
non-performing
assets 267.94 % 227.61 %
Non-performing and
90 day past due
loans to total
loans 0.31 % 0.31 %
Non-performing
loans and 90 day
past due loans to
total assets 0.24 % 0.22 %
Non-accrual loans
to total loans 0.29 % 0.28 %
Non-performing
assets to total
assets 0.37 % 0.41 %
FIRST UNITED CORPORATION
Oakland, MD
Stock Symbol : FUNC
Financial Highlights - Unaudited
June 30, March 31, December 31, September 30, June 30, March 31,
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
(Dollars in thousands,
except per share data) 2026 2026 2025 2025 2025 2025
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
Results of Operations:
Interest income $ 26,169 $ 25,711 $ 26,153 $ 25,762 $ 24,871 $ 24,062
Interest expense 7,583 7,637 8,166 8,359 8,164 8,046
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
Net interest income 18,586 18,074 17,987 17,403 16,707 16,016
Provision for credit
losses 781 879 717 510 860 656
Other operating income 5,319 5,208 5,330 5,074 4,940 4,822
Net gains 39 132 (97) 261 146 92
Other operating expense 15,765 13,693 14,869 12,986 12,974 12,576
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
Income before taxes $ 7,398 $ 8,842 $ 7,634 $ 9,242 $ 7,959 $ 7,698
Income tax expense 1,731 2,179 1,857 2,294 1,975 1,892
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
Net income $ 5,667 $ 6,663 $ 5,777 $ 6,948 $ 5,984 $ 5,806
====================== ======================= ======================== ========================== =================== ==================
Per share data:
Basic net income per share $ 0.88 $ 1.03 $ 0.89 $ 1.07 $ 0.92 $ 0.90
Diluted net income per
share $ 0.87 $ 1.03 $ 0.89 $ 1.07 $ 0.92 $ 0.89
Adjusted basic net income
(1) $ 1.14 $ 1.02 $ 1.10 $ 1.07 $ 0.92 $ 0.90
Adjusted diluted net
income (1) $ 1.13 $ 1.02 $ 1.10 $ 1.07 $ 0.92 $ 0.89
Dividends declared per
share $ 0.26 $ 0.26 $ 0.26 $ 0.26 $ 0.22 $ 0.22
Book value $ 32.91 $ 31.84 $ 31.33 $ 30.65 $ 29.43 $ 28.35
Diluted book value $ 32.86 $ 31.78 $ 31.27 $ 30.59 $ 29.38 $ 28.27
Tangible book value per
share $ 31.16 $ 30.08 $ 29.56 $ 28.87 $ 27.64 $ 26.55
Diluted Tangible book
value per share $ 31.12 $ 30.02 $ 29.50 $ 28.82 $ 27.59 $ 26.47
Closing market value $ 44.11 $ 36.64 $ 37.19 $ 36.77 $ 31.01 $ 30.02
Market Range:
High $ 45.98 $ 40.53 $ 40.79 $ 38.41 $ 32.09 $ 41.61
Low $ 36.27 $ 35.02 $ 33.63 $ 32.02 $ 25.90 $ 29.38
Shares outstanding at
period end: Basic 6,453,836 6,446,717 6,499,476 6,496,908 6,494,611 6,478,634
Shares outstanding at
period end: Diluted 6,462,604 6,459,155 6,511,358 6,508,790 6,506,493 6,497,454
Performance ratios: (Year
to Date Period End,
annualized)
Return on average assets 1.20 % 1.29 % 1.21 % 1.24 % 1.20 % 1.19 %
Adjusted return on average
assets (1) 1.36 % 1.28 % 1.28 % 1.24 % 1.20 % 1.19 %
Return on average
shareholders' equity 11.92 % 13.06 % 12.70 % 13.23 % 12.78 % 12.83 %
Adjusted return on average
shareholders' equity (1) 13.49 % 12.99 % 13.39 % 13.23 % 12.78 % 12.83 %
Net interest margin
(Non-GAAP), includes tax
exempt income of $138 and
$103 3.89 % 3.83 % 3.67 % 3.64 % 3.61 % 3.56 %
Net interest margin GAAP 3.87 % 3.82 % 3.66 % 3.63 % 3.60 % 3.55 %
Efficiency ratio - non-GAAP
(2) 57.49 % 58.45 % 58.19 % 58.73 % 59.66 % 59.95 %
(1) See reconciliation of
this non-GAAP financial
measure provided elsewhere
herein.
(2) Efficiency ratio is a
non-GAAP measure calculated
by dividing total operating
expenses by the sum of tax
equivalent net interest
income and other operating
income, less gains/(losses)
on sales of securities
and/or fixed assets and
costs incurred on core
contract renewal. June 30, March 31, December 31, September 30, June 30, March 31,
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
2026 2026 2025 2025 2025 2025
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
Financial Condition at
period end:
Assets $ 2,082,092 $ 2,039,010 $ 2,087,453 $ 2,023,974 $ 2,007,471 $ 1,979,753
Earning assets $ 1,854,045 $ 1,810,557 $ 1,807,780 $ 1,784,056 $ 1,789,747 $ 1,762,891
Gross loans $ 1,572,131 $ 1,525,466 $ 1,521,704 $ 1,496,762 $ 1,502,481 $ 1,479,869
Commercial Real Estate $ 625,821 $ 609,491 $ 570,808 $ 554,418 $ 550,717 $ 532,764
Acquisition and
Development $ 102,211 $ 97,785 $ 90,272 $ 93,968 $ 98,937 $ 94,063
Commercial and Industrial $ 242,013 $ 246,192 $ 277,034 $ 279,079 $ 281,484 $ 282,370
Residential Mortgage $ 547,118 $ 526,314 $ 536,912 $ 521,317 $ 521,968 $ 520,072
Consumer $ 54,968 $ 45,684 $ 46,678 $ 47,980 $ 49,375 $ 50,600
Investment securities $ 279,300 $ 282,711 $ 279,534 $ 278,898 $ 279,541 $ 275,143
Total deposits $ 1,735,513 $ 1,750,703 $ 1,735,149 $ 1,678,902 $ 1,614,207 $ 1,623,574
Noninterest bearing $ 441,365 $ 451,303 $ 453,036 $ 429,986 $ 425,784 $ 422,415
Interest bearing $ 1,294,148 $ 1,299,400 $ 1,282,113 $ 1,248,916 $ 1,188,423 $ 1,201,159
Shareholders' equity $ 212,374 $ 205,262 $ 203,634 $ 199,099 $ 191,147 $ 183,694
Capital ratios:
Tier 1 to risk weighted
assets 15.26 % 15.82 % 15.36 % 15.59 % 15.22 % 14.87 %
Common Equity Tier 1 to
risk weighted assets 13.48 % 13.94 % 13.52 % 13.68 % 13.32 % 12.97 %
Tier 1 Leverage 12.70 % 12.23 % 12.21 % 12.10 % 12.08 % 11.94 %
Total risk based capital 16.51 % 17.07 % 16.61 % 16.84 % 16.47 % 16.10 %
Asset quality:
Net
(charge-offs)/recoveries
for the quarter $ (96) $ (198) $ (99) $ (435) $ (151) $ (360)
Nonperforming assets:
(Period End)
Nonaccrual loans $ 4,514 $ 4,695 $ 4,192 $ 3,825 $ 3,813 $ 4,026
Loans 90 days past due and
accruing 391 66 477 801 535 233
---------------------- ----------------------- ------------------------ -------------------------- ------------------- ------------------
Total nonperforming loans
and 90 day past due $ 4,905 $ 4,761 $ 4,669 $ 4,626 $ 4,348 $ 4,259
====================== ======================= ======================== ========================== =================== ==================
Other real estate owned $ - $ 1,083 $ 1,083 $ 2,718 $ 3,035 $ 3,062
Other repossessed assets $ 2,780 $ 2,692 $ 2,802 $ 3,043 $ 2,802 $ 2,802
Modified/restructured
loans $ 1,199 $ 1,955 $ 1,209 $ 998 $ 1,198 $ 1,021
Allowance for credit losses
to gross loans 1.31 % 1.31 % 1.28 % 1.28 % 1.27 % 1.25 %
Allowance for credit losses
to non-accrual loans 456.16 % 424.94 % 464.46 % 499.06 % 499.45 % 458.69 %
Allowance for credit losses
to non-performing assets 267.94 % 233.73 % 227.61 % 183.78 % 186.98 % 182.43 %
Non-performing and 90 day
past due loans to total
loans 0.31 % 0.31 % 0.31 % 0.31 % 0.29 % 0.29 %
Non-performing loans and 90
day past due loans to
total assets 0.24 % 0.23 % 0.22 % 0.23 % 0.22 % 0.22 %
Non-accrual loans to total
loans 0.29 % 0.31 % 0.28 % 0.26 % 0.25 % 0.27 %
Non-performing assets to
total assets 0.37 % 0.42 % 0.41 % 0.51 % 0.51 % 0.51 %
Consolidated Statement of Condition
(Dollars in thousands December 31,
- Unaudited) June 30, 2026 March 31, 2026 2025
------------- -------------- --------------
Assets
Cash and due from
banks $ 84,195 $ 89,220 $ 129,830
Interest bearing
deposits in banks 993 627 1,782
------------- -------------- --------------
Cash and cash
equivalents 85,188 89,847 131,612
Investment securities
-- available for sale
(at fair value) 107,997 109,004 107,144
Investment securities
-- held to maturity
(at cost) 170,259 172,672 171,361
Equity investments
with readily
determinable fair
market values 1,044 1,035 1,029
Restricted investment
in bank stock, at
cost 1,621 1,621 4,630
Loans held for sale -- 132 130
Loans 1,572,131 1,525,466 1,521,704
Unearned fees (592) (512) (476)
Allowance for credit
losses (20,591) (19,951) (19,470)
------------- -------------- --------------
Net loans 1,550,948 1,505,003 1,501,758
Premises and
equipment, net 29,550 30,020 29,665
Goodwill and other
intangible assets 11,279 11,361 11,444
Bank owned life
insurance 50,501 50,125 50,360
Deferred tax assets 8,072 9,141 8,730
Other real estate
owned, net -- 1,083 1,083
Operating lease asset 862 939 1,015
Pension asset 24,044 20,036 20,798
Accrued interest
receivable and other
assets 40,727 36,991 46,694
------------- -------------- --------------
Total Assets $ 2,082,092 $ 2,039,010 $ 2,087,453
============= ============== ==============
Liabilities and
Shareholders' Equity
Liabilities:
Non-interest bearing
deposits $ 441,365 $ 451,303 $ 453,036
Interest bearing
deposits 1,294,148 1,299,400 1,282,113
------------- -------------- --------------
Total deposits 1,735,513 1,750,703 1,735,149
Short-term borrowings 69,233 19,588 17,661
Long-term borrowings 30,929 30,929 95,929
Operating lease
liability 1,009 1,095 1,180
Allowance for credit
loss on off balance
sheet exposures 1,463 1,418 1,218
Accrued interest
payable and other
liabilities 29,893 28,323 30,992
Dividends payable 1,678 1,692 1,690
------------- -------------- --------------
Total Liabilities 1,869,718 1,833,748 1,883,819
------------- -------------- --------------
Shareholders' Equity:
Common Stock -- par
value $0.01 per
share; Authorized
25,000,000 shares;
issued and
outstanding 6,453,836
shares at June 30,
2026; 6,494,611 at
June 30, 2025; and
6,499,476 at December
31, 2025 64 64 65
Surplus 19,514 19,360 21,551
Retained earnings 216,262 212,255 207,284
Accumulated other
comprehensive loss (23,466) (26,417) (25,266)
------------- -------------- --------------
Total Shareholders'
Equity 212,374 205,262 203,634
------------- -------------- --------------
Total Liabilities and
Shareholders' Equity $ 2,082,092 $ 2,039,010 $ 2,087,453
============= ============== ==============
Historical Income
Statement
2026 2025
--------------- -------------------------------------------
Year to
Q2 Q1 date Q4 Q3 Q2 Q1
------- ------ ------- ------ ------ ------- -------
In thousands (Unaudited)
----------------- --------------------------------------------------------------
Interest income
Interest and fees
on loans $23,779 $22,502 $ 90,328 $23,219 $23,060 $22,294 $21,755
Interest on
investment
securities
Taxable 1,907 1,880 7,210 1,845 1,826 1,776 1,763
Exempt from
federal income
tax 59 59 218 59 57 57 45
------ ------
Total investment
income 1,966 1,939 7,428 1,904 1,883 1,833 1,808
Other 424 1,270 3,092 1,030 819 744 499
------ ------
Total interest
income 26,169 25,711 100,848 26,153 25,762 24,871 24,062
------ ------ ------- ------ ------ ------ ------
Interest expense
Interest on
deposits 7,033 6,631 27,524 7,044 7,009 6,788 6,683
Interest on
short-term
borrowings 26 11 75 17 17 21 20
Interest on
long-term
borrowings 524 995 5,136 1,105 1,333 1,355 1,343
------ ------
Total interest
expense 7,583 7,637 32,735 8,166 8,359 8,164 8,046
------ ------ ------- ------ ------ ------ ------
Net interest
income 18,586 18,074 68,113 17,987 17,403 16,707 16,016
Credit loss
expense/(credit)
Loans 736 679 2,345 480 480 728 657
Debt securities
held to
maturity -- -- 43 -- 43 -- --
Off balance sheet
credit
exposures 45 200 355 237 (13) 132 (1)
------ ------ ------ ------ ------
Provision for
credit losses 781 879 2,743 717 510 860 656
------ ------ ------- ------
Net interest
income after
provision for
credit losses 17,805 17,195 65,370 17,270 16,893 15,847 15,360
------ ------ ------- ------ ------ ------ ------
Other operating
income
Net gains on
investments,
available for
sale -- -- 97 -- 97 -- --
Gains on sale of
residential
mortgage loans 39 86 533 132 163 146 92
Gains/(Losses) on
disposal of
fixed assets -- 46 (228) (229) 1 -- --
Net
gains/(losses) 39 132 402 (97) 261 146 92
------ ------ ------- ------ ------ ------ ------
Other Income
Service charges
on deposit
accounts 568 547 2,255 568 563 577 547
Other service
charges 204 189 845 207 218 214 206
Trust department 2,684 2,554 9,824 2,667 2,448 2,386 2,323
Debit card income 1,046 931 4,057 1,173 980 983 921
Bank owned life
insurance 376 539 1,408 364 355 348 341
Brokerage
commissions 388 382 1,445 308 346 370 421
Other 53 66 332 43 164 62 63
------ ------
Total other
income 5,319 5,208 20,166 5,330 5,074 4,940 4,822
------ ------ ------- ------ ------ ------ ------
Total other
operating
income 5,358 5,340 20,568 5,233 5,335 5,086 4,914
------ ------ ------- ------ ------ ------ ------
Other operating
expenses
Salaries and
employee
benefits 8,157 8,201 29,347 7,108 7,589 7,319 7,331
FDIC premiums 274 279 1,051 273 266 267 245
Equipment 525 521 2,217 559 515 565 578
Occupancy 690 725 2,860 817 679 675 689
Data processing 1,739 1,664 6,243 1,623 1,517 1,600 1,503
Marketing 193 234 904 288 182 196 238
Professional
services 2,702 570 2,449 745 639 589 476
Contract labor 189 166 634 178 127 166 163
Telephone 93 96 380 97 89 96 98
Other real estate
owned 59 123 2,235 1,866 69 208 92
Investor
relations 85 60 306 55 57 132 62
Contributions 81 65 344 120 90 78 56
Other 978 989 4,435 1,140 1,167 1,083 1,045
------ ------
Total other
operating
expenses 15,765 13,693 53,405 14,869 12,986 12,974 12,576
------ ------ ------- ------ ------ ------ ------
Income before
income tax
expense 7,398 8,842 32,533 7,634 9,242 7,959 7,698
Provision for
income tax
expense 1,731 2,179 8,018 1,857 2,294 1,975 1,892
------ ------
Net Income $ 5,667 $ 6,663 $ 24,515 $ 5,777 $ 6,948 $ 5,984 $ 5,806
====== ====== ======= ====== ====== ====== ======
Basic net income
per common
share $ 0.88 $ 1.03 $ 3.78 $ 0.89 $ 1.07 $ 0.92 $ 0.90
Diluted net
income per
common share $ 0.87 $ 1.03 $ 3.77 $ 0.89 $ 1.07 $ 0.92 $ 0.89
Weighted average
number of basic
shares
outstanding 6,451 6,483 6,490 6,499 6,496 6,489 6,474
Weighted average
number of
diluted shares
outstanding 6,461 6,494 6,504 6,510 6,508 6,506 6,490
Dividends
declared per
common share $ 0.26 $ 0.26 $ 0.96 $ 0.26 $ 0.26 $ 0.22 $ 0.22
Non-GAAP Financial Measures (unaudited) Reconciliation of as
reported (GAAP) and non-GAAP financial measures
The following tables below provide a reconciliation of certain
financial measures calculated under generally accepted accounting
principles ("GAAP") (as reported) and non-GAAP. A non-GAAP
financial measure is a numerical measure of historical or future
financial performance, financial position or cash flows that
excludes or includes amounts that are required to be disclosed in
the most directly comparable measure calculated and presented in
accordance with GAAP in the United States. The Company's
management believes the presentation of non-GAAP financial
measures provide investors with a greater understanding of the
Company's operating results in addition to the results measured
in accordance with GAAP. While management uses these non-GAAP
measures in its analysis of the Company's performance, this
information should not be viewed as a substitute for financial
results determined in accordance with GAAP or considered to be
more important than financial results determined in accordance
with GAAP. The following non-GAAP financial measures exclude
gains on disposal of fixed assets and consulting fees incurred
with core processing contract in 2026.
Three months ended Six months ended June
June 30, 30,
------------------- ------------------------
2026 2025 2026 2025
--------- -------- ------- ---------------
(in thousands,
except for per
share amount)
-----------------
Net income - as
reported $ 5,667 $ 5,984 $12,330 $ 11,790
Adjustments:
Gain on
disposal of
fixed assets -- -- (46) --
Consulting fee
on core
processing
contract 2,179 -- 2,179 --
Income tax
effect of
adjustments (527) -- (516) --
Adjusted net
income
(non-GAAP) $ 7,319 $ 5,984 $13,947 $ 11,790
======== ======= ====== ==============
Basic earnings per
share - as
reported $ 0.88 $ 0.92 $ 1.91 $ 1.82
Adjustments:
Gain on
disposal of
fixed assets -- -- (0.01) --
Consulting fee
on core
processing
contract 0.26 -- 0.26 --
Adjusted basic
earnings per
share (non-GAAP) $ 1.14 $ 0.92 $ 2.16 $ 1.82
======== ======= ====== ==============
Diluted earnings
per share - as
reported $ 0.87 $ 0.92 $ 1.90 $ 1.81
Adjustments:
Gain on
disposal of
fixed assets -- -- (0.01) --
Consulting fee
on core
processing
contract 0.26 -- 0.26 --
Adjusted diluted
earnings per
share (non-GAAP) $ 1.13 $ 0.92 $ 2.15 $ 1.81
======== ======= ====== ==============
As of or for the As of or for the six
three months ended months ended
June 30, June 30,
------------------- ------------------------
(in thousands,
except per share
data) 2026 2025 2026 2025
--------- -------- ------- ---------------
Per Share Data
Basic net income
per share - as
reported $ 0.88 $ 0.92 $ 1.91 $ 1.82
Basic net income
per share -
non-GAAP 1.14 0.92 2.16 1.82
Diluted net income
per share - as
reported $ 0.87 $ 0.92 $ 1.90 $ 1.81
Diluted net income
per share -
non-GAAP 1.13 0.92 2.15 1.81
Basic book value
per share $ 32.91 $ 29.43
Diluted book value
per share $ 32.86 $ 29.38
Significant As of or for the
Ratios: six months ended
June 30,
------------------
2026 2025
--------- --------
Return on Average
Assets - as
reported 1.20 % 1.20 %
Adjustments:
Gain on
disposal of
fixed assets (0.01 %) -
Consulting fee
on core
processing
contract 0.17 % -
Adjusted Return on
Average Assets
(non-GAAP) 1.36 % 1.20 %
Return on Average
Equity - as
reported 11.92 % 12.78 %
Gain on
disposal of
fixed assets (0.03 %) -
Consulting fee
on core
processing
contract 1.60 % -
Adjusted Return on
Average Equity
(non-GAAP) 13.49 % 12.78 %
Three Months Ended
June 30
--------------------------------------------------------------------------
2026 2025
---------------------------------- ----------------------------------
Average Average Average Average
(dollars in thousands) Balance Interest Yield/Rate Balance Interest Yield/Rate
----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Assets
Loans $1,549,332 23,812 6.16% $1,489,485 22,304 6.01%
Investment Securities:
Taxable 291,217 1,907 2.63% 283,914 1,776 2.51%
Non taxable 7,488 106 5.68% 7,424 101 5.46%
---------- ----------
Total 298,705 2,013 2.70% 291,338 1,877 2.58%
Federal funds sold 28,424 344 4.85% 50,675 628 4.97%
Interest-bearing
deposits with other
banks 861 6 2.80% 3,799 20 2.11%
Other interest earning
assets 2,656 74 11.18% 5,815 96 6.62%
---------- ----------
Total earning assets 1,879,978 26,249 5.60% 1,841,112 24,925 5.43%
Allowance for credit
losses (20,249) (18,685)
Non-earning assets 179,343 175,323
Total Assets $2,039,072 $1,997,750
========= =========
Liabilities and
Shareholders' Equity
Deposits
Interest-bearing
demand deposits $ 389,083 $ 1,600 1.65% $ 357,725 $ 1,520 1.70%
Interest-bearing
money markets-
retail 560,943 3,753 2.68% 473,262 3,578 3.03%
Interest-bearing
money markets-
brokered 1 -- --% 496 5 4.04%
Savings deposits 159,161 43 0.11% 168,854 45 0.11%
Time deposits -
retail 148,020 1,370 3.71% 147,433 1,122 3.05%
Time deposits -
brokered 25,000 267 4.28% 50,000 518 4.16%
--------- ------ ---------- --------- ------ ----------
Total deposits 1,282,208 7,033 2.20% 1,197,770 6,788 2.27%
Short-term borrowings 19,922 26 0.52% 19,811 21 0.43%
Long-term borrowings 30,929 524 6.80% 120,929 1,355 4.49%
---------- ----------
Total interest-bearing
liabilities 1,333,059 7,583 2.28% 1,338,510 8,164 2.45%
--------- ------ --------- ------
Non-interest-bearing
deposits 463,149 440,779
Other liabilities 32,586 29,889
Shareholders' Equity 210,278 188,572
Total Liabilities and
Shareholders' Equity $2,039,072 $1,997,750
========= =========
Net interest income and
spread $ 18,666 3.32% $ 16,761 2.98%
====== ======
Net interest margin 3.98% 3.65%
Six Months Ended
June 30,
--------------------------------------------------------------------
2026 2025
------------------------------- -------------------------------
Average Average
Average Yield/ Average Yield/
(dollars in thousands) Balance Interest Rate Balance Interest Rate
----------------------- ---------- ---------- ------- ---------- ---------- -------
Assets
Loans $1,526,255 $ 46,326 6.12% $1,486,334 $ 44,072 5.98%
Investment Securities:
Taxable 291,027 3,787 2.62% 284,612 3,539 2.51%
Non taxable 7,493 211 5.68% 6,977 182 5.26%
------- -------
Total 298,520 3,998 2.70% 291,589 3,721 2.57%
Federal funds sold 78,697 1,513 3.88% 46,213 1,012 4.42%
Interest-bearing
deposits with other
banks 1,602 29 3.65% 3,174 35 2.22%
Other interest earning
assets 3,946 152 7.77% 5,795 196 6.82%
------- -------
Total earning assets 1,909,020 52,018 5.49% 1,833,105 49,036 5.39%
Allowance for credit
losses (19,990) (18,550)
Non-earning assets 178,742 174,298
Total Assets $2,067,772 $1,988,853
========= =========
Liabilities and
Shareholders' Equity
Deposits
Interest-bearing
demand deposits $ 392,655 $ 3,268 1.68% $ 366,170 $ 3,173 1.75%
Interest-bearing
money markets-
retail 554,931 7,428 2.70% 468,732 7,125 3.07%
Interest-bearing
money markets-
brokered 84 1 2.40% 316 6 3.83%
Savings deposits 159,415 81 0.10% 170,178 88 0.10%
Time deposits -
retail 149,015 2,294 3.10% 145,984 2,176 3.01%
Time deposits -
brokered 28,039 592 4.26% 43,059 903 4.23%
--------- ------ ------- --------- ------ -------
Total deposits 1,284,139 13,664 2.15% 1,194,439 13,471 2.27%
Short-term borrowings 19,259 37 0.39% 21,423 41 0.39%
Long-term borrowings 58,940 1,519 5.20% 120,929 2,698 4.50%
------- -------
Total interest-bearing
liabilities 1,362,338 15,220 2.25% 1,336,791 16,210 2.45%
--------- ------ ------- --------- ------ -------
Non-interest-bearing
deposits 463,856 435,362
Other liabilities 32,985 30,682
Shareholders' Equity 208,593 186,018
Total Liabilities and
Shareholders' Equity $2,067,772 $1,988,853
========= =========
Net interest income and
spread $ 36,798 3.24% $ 32,826 2.94%
====== ======
Net interest margin 3.89% 3.61%
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SOURCE First United Corporation
(END) Dow Jones Newswires
July 20, 2026 16:17 ET